ON BIGGEST FRUSTRATION WITH CAPITAL GAINS TAX DEFERRAL

[Brett P Swarts]

Brett Swarts:

Welcome to the capital gains tax solutions podcast. Hey, I'm here with my new friend Scott Lewis. We're gonna be previewing the full episode. But we're gonna be talking about this episode: The biggest frustration with capital gains tax deferral and the 1031 exchange. So Scott, before we go there, though, would you give our listeners a 32nd background on you and your current focus?

Scott Lewis:

Yeah, I'm Scott Lewis. I'm the CEO of Spartan Investment Group, where at Spartan, we are focused mainly on acquiring Self Storage assets for our portfolio. We're also interested in building some RV parks as well, as partners have kind of a full service vertically integrated firm, where we have an acquisitions team to go out and find really good deals, we have a finance team, both on the debt and capital side to find really good debt partners and engage with our private investors. And then we have an operations team, both on asset management and property management, and then also construction. So we go kind of soup to nuts from finding the deal all the way to disposition.

Brett Swarts:

Beautiful, and that helps you to create and preserve our wealth for your friends, family, and partners. And so I appreciate you sharing that, by that we're going to dive into the full story of Scott, his background, his service to the country in the military, and his thoughts on leadership and building teams and the Self Storage world and why it's advantageous versus the multifamily world. But in this quick episode, Scott is curious what's the biggest frustration you have with capital gains tax deferral options, and or the 1031 exchange.

Scott Lewis:

So I think there's, they're, they're really great programs. I think, for the layperson, they're very hard to understand and execute. And I think there's a lot of folks out there that claim to know what they're doing here. But they can really kind of get you in some trouble there. We had an example of one of our investors kind of getting burned with that, with a 1031 got some bad advice from their custodian, and they ended up paying several $100,000. So getting the right person on your team that has the right set of values and the right set of processes in place to kind of help you through and kind of navigate that complex Labyrinth, it's there for good reasons, and they're in their good programs. But just understanding that and being able to navigate that while doing you know, if you're a high net worth, Doctor, I mean, you're cutting people open, you're not necessarily worried about what form to file. So just kind of having that team player that is going to be there for you and navigate.

Brett Swarts:

Yeah, very well said, by the way. I'm just curious about what that mistake was or the miscommunication or what happened in that particular deal. Do you know what the crux of it was?

Scott Lewis:

It was a timing issue. They were told they had more time to do something. I don't remember exactly. They were trying to 1031 into one of our deals. So there wasn't one of our investors. So we just know that they had a 1031. And there were some timing things that they thought they had more time to line up our deal because they were trying to knock down two deals at the same time, and they misfired with us. And unfortunately, not only did they lose their 1031 deferral on our portion of it, but they also went past their due diligence, they lost their earnest money with us.

Brett Swarts:

Yeah, that's a big challenge, though, we just say to fail 1031 exchange, without having to identify anything using a deferred sales trust on a 128 multifamily property in Georgia. And then he took those funds, and he put it back into multi multifamily passive investing with some partners. And so if you want to learn more about that there is a solution. It's called a deferred sales trust. And you no longer have to worry about the timing restrictions ever again, you can buy at optimal timing whenever you want to. We liken it to the Netflix way of doing things versus the old blockbuster way of the 1031 if you want to learn more about that you can go to www.capitalgainstaxsolutions.com that's www.capitalgainstaxsolutions.com. But for our listeners, Scott who wants to learn more about you and what you guys are doing, what's the best place for them to find you.

Scott Lewis:

They can head to our website, www.spartan-investors.com. They can learn kind of all about Spartan and if they're passive investors, they can go to our invest now and kind of get linked up with our Investor Relations team. If they've got some questions about the podcast about leadership or anything directly for me, I could be reached at [email protected].

Brett Swarts:

Beautiful, thanks Scott. Look for the full show here live on youtube actually right now and to drop on iTunes shortly. Thanks, everyone for listening and hope to have you listened again on a future show. Thanks. Bye.

Learn more about Deferred Sales Trust
Visit: www.capitalgainstaxsolutions.com